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Buying FPX Nickel (FPX)

FPX Nickel (FPX) is a junior nickel mining company developing the Decar Nickel District in central British Columbia. This company is already one of my largest holdings, but I am buying another tranche during the share price pullback today. I will consider it an opening position in keeping with the formalities of this blog. My FPX cost basis is much lower than the price that I am paying today which is testament to my belief in the future of this Speculation.

The PEA for the Baptiste deposit at Decar is expected to be published by late Q3/early Q4. I estimate that the PEA will demonstrate that the deposit is profitable at the current price of nickel. Magnetic separation and a low strip ratio will keep costs down.

ESG is a popular investment theme and FPX Nickel ticks that box as well. Not only can the nickel produced at Baptiste be used in EV batteries in the form of nickel sulfate, but the company is well on its ways to demonstrating that this mine could be carbon neutral or better.

Management has shown excellent stewardship including careful spending and prudent capital raising. I do not expect this to change especially as the market mood has evolved. Additional funds are not required to get to the PEA.

Baptiste is massive and could have a 35+ year mine life. Other targets at Decar including the Van target will likely see drilling this year or next so there are reasonable expectations that the nickel resource will grow.

FPX Nickel’s share price has risen considerably during the past couple of weeks. I am banking that it will go significantly higher as it is re-rated after release of the PEA and the property receives further exploration. 

Bought tranche #1 @ 0.33.

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